| Thu 9 Sep 2010, 15:21 | | PPE - Purple Capital Limited - Acquisition of a Treasury Advisory Business |
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PPE
PPE
PPE - Purple Capital Limited - Acquisition of a Treasury Advisory Business
Purple Capital Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE ISIN: ZAE000071411
Acquisition of a Treasury Advisory Business
Purple Capital has reached an agreement in terms of which it will acquire 75% of
the issued share capital and loan accounts in WIP Treasury Solutions (Pty) Ltd
("WTS"), an FSB registered, treasury specialist that provides comprehensive
treasury management solutions, with particular focus on foreign exchange, to a
variety of corporate clients.
Wipcapital (Pty) Ltd (a 100% subsidiary of WIPHOLD, a group dedicated to the
empowerment of black women in South Africa) was the majority shareholder in, and
will retain a 25% shareholding in WTS.
The deal provides Purple Capital with a treasury advisory capability
incorporating central treasury management, debt origination and structuring,
banking transaction management and risk management - which cover corporate
client requirements in foreign exchange, money market and related derivative and
option solutions.
The management team includes specialist staff that have more than twenty years
experience in the corporate and banking sector. WTS has an impressive existing
client base that includes large listed and unlisted entities and a number of the
local operations of multi-nationals. During the year ended 28 February 2010,
approximately R50 billion of transactions were processed, including spot forex
transactions, forward exchange contracts, extensions and early settlements.
This acquisition is strategic for Purple Capital.
It is our intention to partner the existing management team, lead by Craig
Zaayman, into a growth strategy founded on both of our established track
records, complimentary skill sets and networks in corporate South Africa.
The cross selling opportunities between WTS and Purple Capital`s established
Corporate Finance team are already clear to us. There will also be significant
savings and operating efficiencies within the Global Trader dealing environment,
systems capability and established product mix.
Purple Capital`s Executive Chairman, Mark Barnes: "This deal marks our return as
a player in advisory businesses in South Africa with two established teams in
treasury and corporate finance, I`m delighted."
The effective date of the transaction is 1 October 2010. The purchase
consideration will be settled in cash and Purple Capital ordinary shares (using
the 30 day VWAP on the effective date) - depending on the portion of management
shareholders who elect shares instead of cash.
The transaction is subject to the approval and listing by the JSE Limited, of
Purple Capital shares to be issued as part of the settlement of the purchase
consideration and such other regulatory approvals as may be required.
The acquisition falls below the thresholds of category 1 and 2 transactions as
defined in the JSE Listings Requirements - this is therefore a voluntary
announcement, not required by the JSE Listings Requirements, and as such the
purchase price and the financial effects are not required to be disclosed
Johannesburg
9 September 2010
Sponsor
KPMG Services(Pty) Limited
Date: 09/09/2010 15:21:01 Produced by the JSE SENS Department.
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